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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Diversified Energy - FTSE-250 natural gas producer offers 12% yield

March 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DEC
  • Price:
  • 113.5p
The orthodox way of building a successful oil & gas producer is to drill low risk wells in mature locations to boost production & cash flow and recycle this into exploration to hunt for the “company maker.” But FTSE-250 listed Diversified Energy Company (DEC), a US focused natural gas producer, has turned this on its head through its strategy of acquiring tens of thousands of tiny gas wells and associated pipeline infrastructure across the Appalachian Basin in the USA. The value that management adds, led by founder and CEO Robert “Rusty” Hutson jr, a fourth generation Appalachian gas & oil hand, is identifying long life assets and paying keen prices (2-4x EBITDA) in what has long been a buyer’s market following the correction ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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